Indonesia will need to increase the bio content of its palm oil-based biodiesel to 40 per cent by 2024 or risk missing its renewable energy targets, a senior official said Dec. 1.
Indonesia has a mandatory biodiesel program with 30 per cent palm oil content known as B30. Long-standing plans to increase the palm content to 40 per cent by 2021 were delayed due to cheaper fuel costs and record-high palm prices.
“The use of (only) B30 will not achieve the RUEN target for 2025,” Dadan Kusdiana, the director general of the country’s Energy Ministry, told a virtual conference.
He was referring to Indonesia’s goal to increase renewable energy use to 23 per cent of its total energy consumption by 2025, which required biodiesel consumption of 13.9 kilolitres that year.
“The ministry will prepare B40 blending mandatory regulation to ensure investment certainty,” Dadan said, adding that more studies and road tests were required.
Indonesia’s Energy Ministry earlier said it will increase its 2021 biodiesel allocation to meet higher demand for fuel.
Next year’s biodiesel consumption meanwhile, is set to jump to over 10 million kilolitres.
